Use as a Home
If you have any personal use of a vacation home or other dwelling unit you rent out, you have to
divide your expenses between personal use and rental use. Rental use is limited to the days the property is
actually rented. If you use a dwelling unit as a home during the tax year, you not only have to divide the expenses
between personal and rental use but you are also limited in the deductions you can take.
How to know if I used my rental home for personal use?
You use a dwelling unit as a home during the tax year if you use it for personal purposes more than the
- 14 days or
- 10% of the total days it is rented to others at a fair rental price
Rules for counting days of rental use and personal use
If a dwelling unit is used for personal purposes on a day it is rented at a fair rental price,
count that day as a day of personal use for purposes of determining whether the dwelling unit was used as a home
during the tax year. For purposes of determining rental expenses, count such as day as a day of rental use. See
Dividing Rental and Personal Expenses later.
A day of personal use of a dwelling unit is any day it is used by:
you or any other person who has an interest in it
a member of your family or a member of the family of any other person who has an interest in it, unless
the family member uses the unit as his or her main home (the home lived in most of the time) and pays a
fair rental price
anyone under an arrangement that lets you use some other dwelling unit
anyone at less than a fair rental price